Paramount Clears Federal Hurdle in Warner Bros Discovery Takeover Attempt

Paramount announced Friday that the federal antitrust waiting period for its $108.4 billion cash offer to buy Warner Bros Discovery has ended. However, the media giant still faces competition from Netflix, which has already secured a deal to purchase the HBO Max owner for $82.7 billion.

Media conglomerate Paramount announced Friday that federal regulators have completed their initial antitrust review of the company’s massive $108.4 billion cash offer to purchase Warner Bros Discovery, the entertainment giant behind HBO Max.

The conclusion of the regulatory waiting period on February 19th removes one potential roadblock for Paramount’s acquisition attempt, according to company officials. As Paramount noted, this development “means there is no statutory impediment in the U.S. to closing Paramount’s proposed acquisition of WBD.”

However, the end of the mandatory 10-day review period under federal Hart-Scott-Rodino Act guidelines doesn’t signal final approval from the U.S. Department of Justice, which retains authority to continue examining the proposed merger.

Federal investigators maintain the power to demand additional documentation, conduct further analysis, and potentially file legal action to prevent the transaction from moving forward. The Justice Department demonstrated this approach in 2023 when it moved to stop the JetBlue-Sprint combination well after the initial waiting period had concluded.

Complicating Paramount’s pursuit is the absence of a binding agreement with Warner Bros Discovery, which has already committed to a competing offer from streaming giant Netflix valued at $27.75 per share, totaling approximately $82.7 billion.

Netflix’s top legal executive David Hyman criticized Paramount’s announcement, stating: “Paramount Skydance continues to mislead stockholders and distract from the facts.”

“They have not secured approvals needed to close and they are a long way from doing so,” Hyman added.

The Netflix acquisition will likely trigger extensive examination by both American and European competition watchdogs, who must evaluate whether merging Netflix’s worldwide streaming dominance with Warner Bros Discovery’s established century-old entertainment production capabilities would harm market competition or restrict options for consumers.